A Project Report on Effectiveness of ‘SAP HR’ in NTPC Vindhyachal

A Project Report on

“Effectiveness of ‘SAP HR’ in NTPC Vindhyachal” for NatioNal thermal Power CorPoratioN limited In partial fulfilment for the award of the degree of master of BusiNess admiNistratioN

(2009 - 2011)

Acknowledgement A summer project is a golden opportunity for learning and self development. I consider myself very lucky and honoured to have so many wonderful people lead me through in completion of this project.

First of all I would like to thank Mr.XYZ, DGM (HR) and XYZ, Manager (HR) for allowing me to take up my project at their reputed organisation.

My grateful thanks to Ms.XYZ (HR) who in spite of being extraordinarily busy with her duties, took time out to hear, guide and keep me on the correct path.

My special thanks to Ms.XYZ Officer (HR), XYZ and every staff member of NTPC-VSTPS for their guidance at every stage of the project that enabled me to successfully complete this project which otherwise would not have been possible for me to complete the report with fullest endeavour.

Mr.XYZ (Faculty, XYZ) whose patience I have probably tested to the limit. He was always so involved in the entire process, shared his knowledge and encouraged me to think.

Last but not the least there were so many who shared valuable information that helped in the successful completion of this project.

XYZ MBA

2

Preface “Learning categorizes you and practicing on that learning specializes you.”

Practice orientation of management student is must generating competence to deal with issues at grass root level; it is for this reason that six weeks summer training is prescribed as a part of syllabus for MBA course.

This training is the mode of imparting practical knowledge to the student. The objective is to provide a deep insight into practical aspects of the functioning of the organisation. It provides us with the knowledge of the various kinds of problem that crop up in the day to day functioning of the organisation, the way they are solved by the departments and appraisal of the crucial decision taken by the manager at the crucial time.

The Project focuses on aligning Employees, Strategies and Processes for Business Success. In the first part of the study, the overall power related activities that have been undertaken by NTPC over the past years have been discussed to give a basic understanding of the work that is performed by the company. In the second part, the need of SAP ERP in different areas of NTPC to effectively deal with business challenges has been discussed. In this project work, the basic aim is to establish a report which can state the importance of SAP ERP in today’s business development.

By adopting some of the recommendations identified in the questionnaire, the NTPC Limited could improve their service effectiveness through SAP ERP process, and as a consequence, their customer satisfaction and loyalty.

This has given me an altogether new experience, which would be an immense help to me in my days to come.

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Declaration I XYZ hereby affirm that the Project Report entitled “Effectiveness of SAP HR in NTPC Vindhyachal” prepared by me during the year 2010-11 in partial fulfilment of the requirements of Master of Business Administration degree, is my original work and have never been submitted elsewhere.

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Contents Acknowledgement

I

Preface

II

Declaration

III

Chapter 1

2

Page No.

Industrial Profile

1- 5

•

Introduction

2

•

Growth of Indian Power Sector

2

•

Structure of power supply industry

2

•

Indian Power Industry – Current scenario

4

Organisation Profile

6 - 34

•

Brief history of NTPC

7

•

Organization structure of NTPC

9

•

o NTPC Mission

10

o NTPC Vision

10

o Core Values – BCOMIT

11

o Location of NTPC Plants

12

o Subsidiaries

13

o Acquisitions

14

o Introduction to NTPC Vindhyachal

15

o Human Resources

16

Performance

26

o Recognitions and Awards

26

o Diversified growth

28 5

o Future capacity additions •

Products and services of NTPC

31

o Power generation

3

4

30

31

Objective and scope of study

35 - 36

•

Objective of the study

36

•

Scope of the study

36

Theoretical Concept

37 - 70

SAP AG Profile

38 - 52

•

Overview

39

•

SAP Business Suite

40

•

ERP software from SAP

42

•

The evolution of mySAP ERP

49

•

Best practice using SAP ERP

49

•

SAP ERP Human Capital Management

50

•

Advantages and disadvantages of SAP ERP

52

Change Management

53 – 63

•

Change Management

54

•

Change Management Principles

56

•

Change Management Models

56

•

Change Management Process

59

•

ERP (Enterprise Resource Planning)

60

6

Project LAKSHYA in NTPC

64 - 70

•

LAKSHYA Mission

65

•

Project objectives

65

•

Implementation of SAP ERP (Project LAKSHYA)

65

•

Importance of LAKKSHYA in NTPC

66

•

Project DISHA

67

•

Screen shots for SAP HR modules

68

5

Research methodology

71 - 74

6

Data analysis and Interpretation

75 - 94

7

Conclusion and Recommendations

95 - 98

8

Limitations of the study

99 - 100

Bibliography

101

Annexure Abbreviations

List of figures Figure 2.1 Figure 2.2 Figure 2.3 Figure 2.4 Figure 2.5 Figure 2.6 Figure 4.1 Figure 4.2 Figure 4.3 Figure 4.4 Figure 4.5

Growth chart NTPC’s Power Contribution towards India Organization structure of NTPC Location of NTPC Plants Employee development and growth Elements of HR Strategy R/3 Core Business Processes Change Management Process Factors for success of ERP implementation Challenges in ERP implementation Forces for successful change management 7

7 8 9 12 16 19 46 59 61 61 63

Figure 6.1 Figure 6.2 Figure 6.3 Figure 6.4 Figure 6.5 Figure 6.6 Figure 6.7 Figure 6.8 Figure 6.9 Figure 6.10 Figure 6.11 Figure 6.12 Figure 6.13 Figure 6.14 Figure 6.15 Figure 6.16 Figure 6.17 Figure 6.18 Figure 6.19

Training Paper work Productivity Integration of all departments Time & delivery of services Customer satisfaction Workload Chances of error Efficiency of employees Compliance with changing global and local regulation Convenience than older system Availability of SAP ERP services Transaction process Decision making Application Tracker Adaptation to changing environment User friendly Transparency and control of the organisation Standardized business

8

76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94

ChaPter-:1 iNdustrial Profile

Introduction The power sector has registered significant progress since the process of planned development of the economy began in 1950. Hydro -power and coal based thermal power have been the main sources of generating electricity. Nuclear power 9

development is at slower pace, which was introduced, in late sixties. The concept of operating power systems on a regional basis crossing the political boundaries of states was introduced in the early sixties. In spite of the overall development that has taken place, the power supply industry has been under constant pressure to bridge the gap between supply and demand.

Growth of Indian Power Sector Power development is the key to the economic development. The power Sector has been receiving adequate priority ever since the process of planned development began in 1950. The Power Sector has been getting 18-20% of the total Public Sector outlay in initial plan periods. Remarkable growth and progress have led to extensive use of electricity in all the sectors of economy in the successive five years plans. Over the years (since 1950) the installed capacity of Power Plants (Utilities) has increased to 1,59,398 MW (31.3.10) from meagre 1713 MW in 1950, registering a 93 fold increase in 60 years. Similarly, the electricity generation increased from about 5.1 Billion Units to 765.83 Billion Units in 2009-10 – 150 fold increase. The per capita consumption of electricity in the country also increased from 15 kWh in 1950 to about 704 kWh in 2008-09, which is about 46 times. In the field of Rural Electrification and pump set energisation, country has made a tremendous progress. About 85% of the villages have been electrified except far-flung areas in North Eastern states, where it is difficult to extend the grid supply.

Structure of power supply industry In December 1950 about 63% of the installed capacity in the Utilities was in the private sector and about 37% was in the public sector. The Industrial Policy Resolution of 1956 envisaged the generation, transmission and distribution of power almost exclusively in the public sector. As a result of this Resolution and facilitated by the Electricity (Supply) Act, 1948, the electricity industry developed rapidly in the State Sector.

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In the Constitution of India "Electricity" is a subject that falls within the concurrent jurisdiction of the Centre and the States. The Electricity (Supply) Act, 1948, provides an elaborate institutional frame work and financing norms of the performance of the electricity industry in the country. The Act envisaged creation of State Electricity Boards (SEBs) for planning and implementing the power development programmes in their respective States. The Act also provided for creation of central generation companies for setting up and operating generating facilities in the Central Sector. The Central Electricity Authority constituted under the Act is responsible for power planning at the national level. In addition the Electricity (Supply) Act also allowed from the beginning the private licensees to distribute and/or generate electricity in the specified areas designated by the concerned State Government/SEB. During the post independence period, the various States played a predominant role in the power development. Most of the States have established State Electricity Boards.

In some of these States separate corporations have also been established to install and operate generation facilities. In the rest of the smaller States and UTs the power systems are managed and operated by the respective electricity departments. In a few States private licensees are also operating in certain urban areas.

From, the Fifth Plan onwards i.e. 1974-79, the Government of India got itself involved in a big way in the generation and bulk transmission of power to supplement the efforts at the State level and took upon itself the responsibility of setting up large power projects to develop the coal and hydroelectric resources in the country as a supplementary effort in meeting the country’s power requirements. The National thermal Power Corporation (NTPC) and National Hydro-electric Power Corporation (NHPC) were set up for these purposes in 1975. North-Eastern Electric Power Corporation (NEEPCO) was set up in 1976 to implement the regional power projects in the North-East. Subsequently two more power generation corporations were set up in 1988 viz. Tehri Hydro Development Corporation (THDC) and Nathpa Jhakri Power Corporation (NJPC). To construct, operate and maintain the inter-State and interregional transmission systems the National Power Transmission Corporation (NPTC) was set up in 1989. The corporation was renamed as POWER GRID in 1992.

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The policy of liberalisation the Government of India announced in 1991 and consequent amendments in Electricity (Supply) Act have opened new vistas to involve private efforts and investments in electricity industry. Considerable emphasis has been placed on attracting private investment and the major policy changes have been announced by the Government in this regard.

Indian power industry- Current scenario Generation India has the fifth largest generation capacity in the world with an installed capacity of 152 GW as on 30 September 2009, which is about 4 percent of global power generation. The top four countries, viz., US, Japan, China and Russia together consume about 49 percent of the total power generated globally. The average per capita consumption of electricity in India is estimated to be 704 kWh during 2008-09.

However, this is fairly low when compared to that of some of the developed and emerging nations such as US (~15,000 kWh) and China (~1,800 kWh). The world average stands at 2,300 kWh. The Indian government has set ambitious goals in the 11th plan for power sector owing to which the power sector is poised for significant expansion. In order to provide availability of over 1000 units of per capita electricity by year 2012, it has been estimated that need-based capacity addition of more than 100,000 MW would be required. This has resulted in massive addition plans being proposed in the sub-sectors of Generation Transmission and Distribution.

Transmission The current installed transmission capacity is only 13 percent of the total installed generation capacity. With focus on increasing generation capacity over the next 8-10 years, the corresponding investments in the transmission sector is also expected to augment. The Ministry of Power plans to establish an integrated National Power Grid in the country by 2012 with close to 200,000 MW generation capacities and 37,700 MW of inter-regional power transfer capacity. Considering that the current interregional power transfer capacity of 20,750 MW, this is indeed an ambitious objective for the country.

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Distribution While some progress has been made at reducing the Transmission and Distribution (T&D) losses, these still remain substantially higher than the global benchmarks, at approximately 33 percent. In order to address some of the issues in this segment, reforms have been undertaken through unbundling the State Electricity Boards into separate Generation, Transmission and Distribution units and privatization of power distribution has been initiated either through the outright privatization or the franchisee route; results of these initiatives have been somewhat mixed. While there has been a slow and gradual improvement in metering, billing and collection efficiency, the current loss levels still pose a significant challenge for distribution companies going forward.

13

ChaPter-:2 orgaNisatioN Profile

Brief history of NTPC India’s largest power company, NTPC was set up in 1975 to accelerate power development in India. NTPC is emerging as a diversified power major with presence 14

in the entire value chain of the power generation business. Apart from power generation, which is the mainstay of the company, NTPC has already ventured into consultancy, power trading, ash utilisation and coal mining. NTPC ranked 317th in the ‘2009, Forbes Global 2000’ ranking of the world’s biggest companies. .

The total installed capacity of the company is 31,704 MW (including JVs) with 15 coal based and 7 gas based stations, located across the country. In addition under JVs, 3 stations are coal based & another station uses naptha/LNG as fuel. By 2017, the power generation portfolio is expected to have a diversified fuel mix with coal based capacity of around 53000 MW, 10000 MW through gas, 9000 MW through Hydro generation, about 2000 MW from nuclear sources and around 1000 MW from Renewable Energy Sources (RES). NTPC has adopted a multi-pronged growth strategy which includes capacity addition through green field projects, expansion of existing stations, joint ventures, subsidiaries and takeover of stations.

NTPC has been operating its plants at high efficiency levels. Although the company has 18.10% of the total national capacity it contributes 28.60% of total power generation due to its focus on high efficiency.

SOURCE: www.ntpc.co.in

Figure 2.1: Growth Chart

In October 2004, NTPC launched its Initial Public Offering (IPO) consisting of 5.25% as fresh issue and 5.25% as offer for sale by Government of India. NTPC thus became a listed company in November 2004 with the government holding 89.5% of the equity 15

share capital. The rest is held by Institutional Investors and the Public. The issue was a resounding success. NTPC is among the largest five companies in India in terms of market capitalisation.

SOURCE: www.ntpc.co.in Figure 2.2: NTPC’s Power Contribution towards India

At NTPC, People before Plant Load Factor is the mantra that guides all HR related policies. NTPC has been awarded No.1, Best Workplace in India among large organisations and the best PSU for the year 2009, by the Great Places to Work Institute, India Chapter in collaboration with The Economic Times.

The concept of Corporate Social Responsibility is deeply ingrained in NTPC's culture.

Through its expansive CSR initiatives, NTPC strives to develop mutual trust with the communities that surround its power stations.

Organization Structure of NTPC

16

Source: www.ntpc.co.in Figure 2.3: Organization structure of NTPC

Organization structure includes three levels of management i.e. corporate level including top management, then region level comprising management of SBU regional level management & last as planning level management as GMs of various plants.

17

NTPC MISSION “Develop and provide reliable power, related products and services at competitive prices, integrating multiple energy sources with innovative and eco friendly technologies and contribute to society”

NTPC VISION “A world class integrated power major, powering India’s growth, with increasing global presence”

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Core Values – BCOMIT

B usiness Ethics

C ustomer Focus

O rganisational & Professional Pride

M utual Respect & Trust

I nnovation & Speed

T otal Quality for Excellence

Location of NTPC Plants

19

SOURCE: www.ntpc.co.in Figure 2.4: LOCATION

Subsidiaries 20

OF

NTPC PLANTS

NTPC Electric Supply Company Ltd. (NESCL) The company was formed on August 21, 2002. It is a wholly owned subsidiary company of NTPC with the objective of making a foray into the business of distribution and supply of electrical energy, as a sequel to reforms initiated in the power sector.

NTPC Vidyut Vyapar Nigam Ltd. (NVVN) The company was formed on November 1, 2002, as a wholly owned subsidiary company of NTPC. The company’s objective is to undertake sale and purchase of electric power, to effectively utilise installed capacity and thus enable reduction in the cost of power.

NTPC Hydro Ltd. (NHL) The company was formed on December 12, 2002, as a wholly owned subsidiary company of NTPC with an objective to develop small and medium hydroelectric power projects of up to 250 MW.

Pipavav Power Development Co. Ltd. (PPDCL) A memorandum of understanding was signed between NTPC, Gujarat Power Corporation Limited (GPCL) and Gujarat Electricity Board (GEB) in 2004 for development of a 1000 MW thermal power project at Pipavav in Gujarat by forming a new joint venture company between NTPC and GPCL with 50:50 equity participation. Pursuant to the decision of Gujarat Government, NTPC Ltd. has dissociated itself from this company. PPDCL is under winding up.

Kanti Bijlee Utpadan Nigam Limited, (formerly known as Vaishali Power Generating Company Limited) To take over Muzaffarpur Thermal Power Station (2*110MW), a subsidiary company named ‘Vaishali Power Generating Company Limited (VPGCL)’ was incorporated on September 6, 2006 with NTPC contributing 51% of equity and balance equity was contributed by Bihar State Electricity Board. This company was formed to renovate the existing unit and run the plant. The second unit has been successfully re21

synchronised on October 17, 2007 after 4 years of being idle. Renovation and modernisation of the first unit is under progress. The company was rechristened as ‘Kanti Bijlee Utpadan Nigam Limited’ on April 10, 2008.

Bharatiya Rail Bijlee Company Limited (BRBCL) A subsidiary of NTPC under the name of ‘Bharatiya Rail Bijlee Company Limited’ was incorporated on November 22, 2007 with 74:26 equity contribution from NTPC and Ministry of Railways, Govt. of India respectively for setting up of four units of 250 MW each of coal based power plant at Nabinagar, Bihar. Investment approval of the project was accorded in January, 2008.

Acquisitions Business development through Acquisition serves both NTPC's own commercial interest as well as the interest of the Indian economy.

Taking over, being a part of the acquisition process is also an opportunity for NTPC to add to its power generation capacity at a very low gestation period. NTPC has, over the years, acquired the following three power stations belonging to other utilities/SEBs and has turned around each of them using its corporate abilities.

POWER STATIONS TAKEN OVER

2x210 MW Feroze Gandhi Unchahar Thermal Power Station

YEAR

1991

ORIGINAL OWNER

UP Rajya Vidyut Utpadan Nigam Limited

4x60 MW +2x110 MW Talcher Thermal Power 1995 Station Orissa State Electricity Board

Orissa State Electricity Board

4x110 MW Tanda Thermal Power Station

2000

UP Rajya Vidyut Utpadan Nigam Limited

705MW Badarpur Thermal Power Station Central Electricity Authority

2006

Central Electricity Authority

Introduction to NTPC Vindhyachal

22

The Vindhyachal Super Thermal Power Project (VSTPS) is one of the largest super thermal power stations set up by NTPC. It is situated on the north-western bank of Govind Vallabh Pant Sagar (Rihand Reservior) adjacent to massive coal field of Singrauli. It is the largest power plant of India- installed in three stages. Stage-I is installed with the help of USSR engineers and machinery and Stage-II & III are installed by Indian machines of BHEL, L&T, CG, ABB etc. Details of this project are given in table below.

FACT FILE: Total manpower- 1565 in which 620 are executives and 945 are non-executives as on 21-06-2010.

Location Approved capacity

P.O.- Vindhyanagar, Dist.- Singrauli, Madhya Pradesh486885 3260 MW (Stage-I 1260 MW + Stage-II 1000 MW +

Installed capacity

Stage-III 1000 MW) 3260 MW

Coal source

Nigahi Mines

Water source

Discharge canal of Singrauli Super Thermal Power Station

Beneficiary states

Madhya Pradesh, Chattisgarh, Maharashtra, Gujarat, Goa, Daman & Diu and Dadar & Nagar Havali

Approved investment

Stage-I & II- Rs.4053.42 Crores + Stage-III- Rs.4201.5 Crores

Unit sizes Units commissioned

Stage-I: 6×210 MW + Stage-II: 2×500 + Stage-III: 2×500 MW Unit-I : 210 MW October 1987 Unit-II : 210 MW July 1988 Unit-III : 210 MW February 1989 Unit-IV : 210 MW December 1989 Unit-V : 210 MW March 1990 Unit-VI : 210 MW February 1991 Unit-VII : 500 MW March 1999 Unit-VIII : 500 MW February 2000 Unit-IX : 500 MW July 2006 Unit-X : 500 MW March 2007

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International assistance

USSR- Stage-I World Bank under time Slice Loan- Stage-II

Human Resources 'People before PLF (Plant Load Factor)' is the guiding philosophy behind the entire gamut of HR policies at NTPC. They are strongly committed to the development and growth of all the employees as individuals and not just as employees. They currently employ approximately 24500 people at NTPC. Competence building, Commitment building, Culture building and Systems building are the four building blocks on which our HR systems are based.

Source: www.ntpc.co.in Figure 2.5: EMPLOYEE DEVELOPMENT AND GROWTH

Our HR Vision "To enable our people to be a family of committed world class professionals."

Recruitment

24

NTPC believes in the philosophy of 'Grow your own timber'. 'Executive Trainee' scheme was introduced in 1977 with the objective of raising a cadre of home grown professionals. First Division Graduate Engineers/ Post graduates are hired through nation-wide open competitive examinations and campus recruitments. Hiring is followed by 52 weeks of fully paid induction training.

Career Advancement & Opportunities NTPC has a well established talent management system in place, to ensure that they deliver on their promise of meaningful growth and relevant challenges for their employees.

Their

talent

management

system

comprises

PERFORMANCE

MANAGEMENT, CAREER PATHS and LEADERSHIP DEVELOPMENT.

Rewards & Recognitions NTPC has, from inception, created a culture of rewards and recognitions through celebration of various achievements and events and recognising the contributions behind such success.

Innovate, Create, Compete NTPC has introduced numerous initiatives which seek to enhance the creativity, innovation, functional aptitude and teamwork of employees. These initiatives include National Open Competition for Executive Talent (NOCET), Professional Circles, Quality Circles, Business Minds and Medha Pratiyogita (a quiz for our employees). A management journal called “Horizon” is published quarterly to enable the employees to share their ideas and experiences across the organisation.

Quality of Work-Life NTPC is proud of its systems for providing a good quality of work-life for its employees. In addition to providing beautiful and safe work places, NTPC encourages a culture of mutual respect and trust amongst peers, superiors and subordinates.

Away from hectic city life, NTPC townships provide an environment of serenity, natural beauty and close community living. Numerous welfare and recreation facilities 25

including schools, hospitals and clubs are provided at the townships to enhance quality of life & the well being of employees and their families. An entire range of benefits, from child care leave to post retirement medical benefits are extended to employees to meet any exigency that may arise in a person's life.

Knowledge Management in NTPC To meet the ultimate objective of becoming a learning organisation, an integrated Knowledge Management System has been developed, which facilitates tacit knowledge in the form of learning and experiences of employees to be captured and summarized for future reference.

Training & Development NTPC subscribes to the belief that efficiency, effectiveness and success of the organisation, depends largely on the skills, abilities and commitment of the employees who constitute the most important asset of the organisation.

NTPC’s Training Policy envisages a minimum of 7 man days of training per employee per year. They have developed their own comprehensive training infrastructure.

Education Up-gradation Schemes To meet the academic aspirations of employees and match them with the needs of the organisation, NTPC has tie-ups with institutes of repute like MDI, Gurgaon; IIT Delhi; BITS Pilani, etc. NTPC sponsors fixed size batches of employees who are inducted into these courses based on their performance rating in the company and their performance in the entrance exam conducted by the respective institute. Unlike other study leave and sabbaticals, employees undergoing these courses do not forego their salary or growth during the duration of the course.

Seeking Feedback NTPC actively seeks and encourages employee feedback to ensure that their HR interventions and practices remain relevant and meaningful. Employee Satisfaction and Organisational Climate Surveys are conducted regularly.

26

Elements of HR Strategy Competence building, Commitment building, Culture building and Systems building are the four building blocks on which our HR systems are based.

COMPETENCE BUILDING

CULTURE BUILDING

COMMITMEENT BUILDING

NTPC

SYSTEMS BUILDING Figure 2.6: ELEMENTS

OF

HR S TRATEGY

A. Competency Building Measures • Talent Hiring and Management  Key Focus of HR: Attracting, Developing & Retaining Talents to be done on sound manpower planning system based on benchmarking of international practices of manpower norms.  The cost and quality of manpower hired to be competitive.  Development of Business orientation, commercial, marketing and legal skills

27

• Competency based Performance Management System  Shift the focus from performance appraisal to performance management at all levels  Define, document and circulate competencies of all employees  Measures like KPA, Review & feedback system, identifying developmental needs and linkage with T&D and Rewards & Recognitions  Online Module of PMS  Equipping Executives with Performance counselling , coaching & giving positive feedback to improve performance, transparency and objectivity  Performance Evaluation to bring out developmental needs and linking it to Training and Development Initiatives  Identifying Performers and Non-performer  Coaching and counselling the Non-Performers to enhance performance  System for suitably dealing the persistent Non-Performance.

• Leadership Development Program  Leadership Development at all levels with special focus on developing strategic leaders, functional leaders, business leaders, entrepreneurial leaders and transformational leaders  Review & reinforcement of current leadership development program with emphasis on people orientation and culture building.  Development of Global Competencies

• Transition of Development Centre to Assessment Centre at different transitional levels involving role change • Multi-source Feedback through 360° appraisals • Integrated Career planning, development and succession planning  Focus on employee Development & Job enrichment 28

 Identifying various career paths leading to business leaders/functional leaders  Short-term and long -term career rotation plans  Strengthening succession planning for senior level positionsLeadership succession criteria up to two levels below the Board  Identifying the functions and Jobs which are specialist in nature and development of growth opportunities.

• Training and Development, E-Learning & Global Exposure  Build functional Competency in all areas. Strengthen Core competencies of the people in the company through state of the art practices.  Adopting Training Evaluation Model  Measuring effectiveness of training and transfer of the skill to the workplace  E-Learning modules for distant learning  Global exposure of executives for global competencies and mindset

• Strengthening R&D  Revitalized R&D and Technology Centre  Significant role through applied & basic research  Global competencies

B. Commitment Building Measures • Enabling Organizational Climate  Motivation and commitment through tangible & intangible motivators  The employee welfare systems will be designed and maintained by way of providing best of quality of life to employees, their children and family members so as to make NTPC a preferred employer.

29

 Enhancing employee satisfaction through regular surveys and addressing the areas of concern to transform NTPC a great place to work.

• Compensation  Compensation on the principle of differentiated compensation based on performance and merit

• Involvement and Attitude  Use of participative foray  Positive attitude through training, role models, value based behaviour and rewards

C. Culture Building Measures • Core-Values Actualization  Value Handbook, Values workshop, Value Actualization Teams, Value Audit & Rewards  Development of value based leadership.

• Culture of Respect, Trust and Openness  Value based behaviour campaign  New PMS system built around competency, feedback etc

• Culture of Team Work  Shift from hierarchical to flexible team based work teams

• Customer Focus  Culture of working as per the needs and expectations of customers  Measurement for customer orientation of executives

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 System for interaction, feedback and evaluation of HR services by the internal customers.  Communication (Top Down, Bottom Up, Forums, E-Communication/ outside world for a socially responsive Organization)  Communication to be used as tool for removing misconceptions, managing perception and promoting openness, trust and transparency.

• Managing Globalization  Competency for multi-cultural nuances, diversity, law of the land, language & etiquettes  Addressing compensation, Organization Cultures, competency and commitment development issues by developing suitable systems and processes.

• Managing Mergers and Acquisitions

D. System Building Measures • Focus on core-competency  Identifying core-competencies of HR & out-source, automate/simplify the noncore activities so that time spent for routine and repetitive activities are released for core-activities  Competitive and comparable cost for providing HR services  Hassle free and quality service for achieving high customer satisfaction  Continuous feedback from the customers on the service provided.

• IT enabled Systems  Implementation of SAP ERP process  Making NTPC a paperless office through state of art technology

• Knowledge Management System • Process Improvement Tools 31

 ISO standards in HR, Six Sigma

• Strategy Measurement and Alignment Tool  Implementation of Balance Score Card in HR

• Customer Relationship Management • Managing Change • Productivity Enhancement measures • Discipline Management • Measuring impact of HR Initiatives through research and Feedback

HR Functions at NTPC The entire gamut of functions relating to HR in NTPC has been organised under three levels, viz. Corporate, Regional and project levels. The responsibilities vary from level to level depending on the tasks assigned, accountability and implementation criteria. An overview of these functions is given as under.

Corporate Level Major functions under this level are: •

Industrial Engineering

•

Employment and Placement

•

Training

•

Management

Development,

Organisational

Resource Research •

Employee Benefits

•

Policies and Rules

•

Employee Relation and Welfare Policies 32

Development

and

Human

•

HRD

–

Promotion,

Performance

Appraisal

System

and

Employee

Development •

Employee Services

•

Corporate Office Administration

•

Public Relations

Regional Level At the regional level the functions undertaken by HR department are •

Employee Benefits

•

Recruitment

•

Employee Services

Project Level The major functions covered by this level are •

Employee Benefits: This area covers the activities pertaining to joining, posting and transfers, confirmation/absorption, promotion and seniority, processing of resignation, retirement cases pertaining to the non-executive employees of the project apart from the employee entitlements of all the staff posted in projects as per the policies laid down.

•

Industrial Engineering &Recruitment: The activities include manpower planning, budgeting, organisation structure, incentive/reward

scheme,

computerization,

job

preparation evaluation

of and

personal

data

development

bank

and

of

job

specification/descriptions. Recruitment deals with the various activities pertaining to recruitment of non-executive manpower required for the project as per the manpower budgets laid down.

33

•

Employee Relations and Welfare: This function deals with the implementation of various industrial relations and welfare policies apart from the day-to-day problem solving and shop floor IR.

•

Employee Services: The activities under this are the development and maintenance of office facilities and administration of township like house allotments, SC/ST horticulture, issuing of personal issue items, communication, receipt and dispatch and all such other activities required at the project level are taken care by this function.

•

Employee Development Centre: The centre looks after the conduct of long duration training programmes under the executive/Diploma/ITI trainee schemes apart from short-term skill/ worker/ supervisory development program. The development and maintenance of workshops, hostels and other training facilities form a part of this function.

•

Public Relations: Establishment of constant liaison with the public, regional press and other media, publication of house journals etc. form the major components of this function.

•

Law Cell: The responsibility of this function spans the various activities relating to the representation of the organisation in various cases in the labour and other courts on land acquisition, labour dispute cases etc.

•

Corporate Social Responsibility: This cell looks after various activities, which are related to the development of society as a whole. Resettlement and rehabilitation of lands outside, community development activities in nearby villages, providing infrastructure like that for schools, primary health, planting trees etc. One of the major contributions of this section is the plantation of about 14 lakh trees across the nation.

34

Performance Recognitions and Awards HR Awards 1.

Two Awards for NTPC at Asia Best Employer Brand Awards

2. Overall 7th in ‘India’s Best Companies to Work for 2010’, 1st amongst the PSUs and 1st in Manufacturing & Production Industry Segment.

3. Great Places to Work Award 2009 4. AMITY HR Excellence Award 5. NCPEDP-Shell Helen Keller Award 2009 6. Vishwakarma Rashtriya Puraskar (VRP) – 2007 7. Best Companies to Work For – 2009 8. SCOPE Meritorious Award for Best Practices in Human Resource Management

Company Rankings 1.

Platts Top 250 Global energy Company for 2009

2. India’s Biggest News Makers Survey 3. Business Standard's "BS1000" companies

Safety Awards 1.

Safety Award 2009

2. Best Environment Management Station Award for Safety

Environment Awards

35

1.

The Sunday Indian Special Mega Excellence – “India’s Best Environment Driven Company Award – 2009.

2. 4th Water Digest Water Award 2009-10

Performance Awards 1.

Enertia Awards for NTPC Projects & Shri D K Jain, Director (Technical), NTPC Ltd receives award for Excellence in Nuclear, Thermal (Conventional Energy)

2. Vishwakarma Award for 12 NTPC Employees 3. Prime Minister’s Shram Award to NTPC’s Misri Lal Choudhary 4. The Best Performing CFO Award 5. India Pride Awards – Energy and Power Category 6. Enertia Award 2009 7. SAFA Best Presented Accounts Awards 2008 8. CII-EXIM Excellence Award, 2009 9. National Awards for Meritorious Performance

CSR AWARDS 1.

2nd India Power Awards 2009

2. CII ITC Sustainability Award

Corporate Governance Awards 1.

Golden Peacock Global Award for Excellence in Corporate Governance – 2009

2. ICSI National Award for Excellence in Corporate Governance 2009

Quality Awards 1. International Gold Star Award for Quality 2009 36

NTPC, the country's largest power producer, has got the ''Maharatna'' status which empowers the firm to take investment decisions of up to Rs 5,000 crore.

Diversified Growth NTPC’s quest for diversification started with its foray into Hydro Power. It has, since then, been moving towards becoming a highly diversified company through backward, forward and lateral integration. The company is well on its way to becoming ‘an Integrated Power Major’, having entered Hydro Power, Coal Mining, Power Trading, Equipment Manufacturing and Power Distribution. NTPC has made long strides in developing its Ash Utilisation business. In its pursuit of diversification, NTPC has also developed strategic alliances and joint ventures with leading national and international companies. 

Hydro Power: In order to give impetus to hydro power growth in the country and to have a balanced portfolio of power generation, NTPC entered hydro power business with the 800 MW Koldam hydro project in Himachal Pradesh.

Two more projects have also been taken up in Uttarakhand. A wholly owned subsidiary, NTPC Hydro Ltd., is setting up hydro projects of capacities up to 250 MW.



Coal Mining: In a major backward integration move to create fuel security, NTPC has ventured into coal mining business with an aim to meet about 20% of its coal requirement from its captive mines by 2017. The Government of India has so far allotted 7 coal blocks to NTPC, including 2 blocks to be developed through joint venture route. Coal Production is likely to start in 2009-10.



Power Trading: 'NTPC Vidyut Vyapar Nigam Ltd.' (NVVN), a wholly owned subsidiary was created for trading power leading to optimal utilization of NTPC’s assets. It is the second largest power trading company in the country. In order to facilitate power trading in the country, ‘National Power 37

Exchange Ltd.’, a JV between NTPC, NHPC, PFC and TCS has been formed for operating a Power Exchange.



Ash Business: NTPC has focused on the utilization of ash generated by its power stations to convert the challenge of ash disposal into an opportunity. Ash is being used as a raw material input for cement companies and brick manufacturers. NVVN is engaged in the business of Fly Ash export and sale to domestic customers. Joint ventures with cement companies are being planned to set up cement grinding units in the vicinity of NTPC stations.



Power Distribution: ‘NTPC Electric Supply Company Ltd.’ (NESCL), a wholly owned subsidiary of NTPC, was set up for distribution of power.

NESCL is actively engaged in ‘Rajiv Gandhi Gramin Vidyutikaran Yojana’ programme for rural electrification and also working as 'Advisor cum Consultant' for Ministry of Power for implementation of Accelerated Power Development and Reforms Programme (APDRP) launched by Government of India.



Equipment Manufacturing: Enormous growth in power sector necessitates augmentation of power equipment manufacturing capacity. NTPC has formed JVs with BHEL and Bharat Forge Ltd. for power plant equipment manufacturing. NTPC has also acquired stake in Transformers and Electricals Kerala Ltd. (TELK) for manufacturing and repair of transformers.

Future capacity additions NTPC has formulated a long term Corporate Plan upto 2017. In line with the Corporate Plan, the capacity addition under implementation stage is presented below:

PROJECT

STATE

MW

Coal 1.

NCTPP II ( 2 x 490)

Uttar Pradesh

980

2

Korba III ( 1 x 500)

Chhattisgarh

500

3

Sipat I (3 x 660)

Chhattisgarh

1980

38

4.

Farakka III ( 1 x 500)

West Bengal

500

5.

Indira Gandhi STPP- JV with IPGCL & HPGCL ( 3 x 500) Haryana

1500

6.

Simhadri II ( 2 x 500)

Andhra Pradesh

1000

7.

Vallur I -JV with TNEB ( 2 x 500)

Tamilnadu

1000

8.

Vallur Stage-I Phase-II -JV with TNEB ( 1 x 500)

Tamilnadu

500

9.

Bongaigaon(3 x 250)

Assam

750

10. Mauda ( 2 x 500)

Maharashtra

1000

11. Rihand III(2X500)

Uttar Pradesh

1000

12. Vindhyachal-IV (2X500)

Madhya Pradesh

1000

13. Nabinagar TPP-JV with Railways (4 x 250)

Bihar

1000

14. Barh II (2 X 660)

Bihar

1320

15. Barh I (3 X 660)

Bihar

1980

Hydro 1.

Koldam HEPP ( 4 x 200)

Himachal Pradesh

800

2.

Loharinag Pala HEPP ( 4x 150)

Uttarakhand

600

3.

Tapovan Vishnugad HEPP (4 x 130)

Uttarakhand

520

Total

17930

Products and services of NTPC Power generation is the main activity of NTPC which has an installed capacity of 28,840 MW shared by 22 generating stations. Five generating stations in joint venture have an additional capacity of 2,864 MW. Consultancy in fields of water supply and treatment, fossil fuel based thermal power stations, environment engineering, and cogeneration plants. Consultancy service has got NTPC over 435 domestic and international orders.

Power Management Institute in Noida provides classroom training in power plant operations and management. Full Scope Replica Training Simulator for coal and gas based power plants makes training meaningful and effective. Students from outside NTPC can also undergo these training schedules.

Power generation 39

Presently, NTPC generates power from coal and gas. With an installed capacity of 31,704 MW, NTPC is the largest power generating major in the country. It has also diversified into hydro power, coal mining, power equipment manufacturing, oil and gas exploration, power trading and distribution. With an increasing presence in the power value chain, NTPC is well on its way to becoming an “integrated power major”.

Installed Capacity Be it the generating capacity or plant performance or operational efficiency, NTPC’s Installed Capacity and performance depicts the company’s outstanding performance across a number of parameters.

NO. OF PLANTS

CAPACITY (MW)

NTPC Owned Coal Gas/Liquid Fuel Total

15

24,885

7

3,955

22

28,840

5

2,864

27

31,704

Owned By JVs Coal & Gas Total

Regional Spread of Generating Facilities REGION

COAL

GAS

TOTAL

Northern

7,525

2,312

9,837

Western

6,360

1,293

7,653

Southern

3,600

350

3,950

Eastern

7,400

-

7,400

924

1,940

2,864

25,809

5,895

31,704

JVs Total

Coal Based Power Stations With 15 coal based power stations, NTPC is the largest thermal power generating company in the country. The company has a coal based installed capacity of 24,885 MW. 40

COAL BASED(Owned

COMMISSIONED

STATE

by NTPC)

CAPACITY(MW)

1.

Singrauli

Uttar Pradesh

2,000

2.

Korba

Chhattisgarh

2,100

3.

Ramagundam

Andhra Pradesh

2,600

4.

Farakka

West Bengal

1,600

5.

Vindhyachal

Madhya Pradesh

3,260

6.

Rihand

Uttar Pradesh

2,000

7.

Kahalgaon

Bihar

2,340

8.

NCTPP, Dadri

Uttar Pradesh

1,330

9.

Talcher Kaniha

Orissa

3,000

10. Feroze Gandhi, Unchahar Uttar Pradesh

1,050

11. Talcher Thermal

Orissa

460

12. Simhadri

Andhra Pradesh

13. Tanda

Uttar Pradesh

440

14. Badarpur

Delhi

705

15. Sipat-II

Chhattisgarh

1,000

1,000

Total

24,885

Coal Based Joint Ventures: COAL BASED

STATE

(Owned by JVs)

COMMISSIONED CAPACITY

1.

Durgapur

West Bengal

120

2.

Rourkela

Orissa

120

3.

Bhilai

Chhattisgarh

574

4.

Kanti

Bihar

110

Total

924

Gas/Liquid Fuel Based Power Stations

41

GAS BASED STATE

(Owned by NTPC)

COMMISSIONED CAPACITY(MW)

1.

Anta

Rajasthan

413

2.

Auraiya

Uttar Pradesh

652

3.

Kawas

Gujarat

645

4.

Dadri

Uttar Pradesh

817

5.

Jhanor-Gandhar

Gujarat

648

Kerala

350

Haryana

430

6.

7.

Rajiv Gandhi CCPP Kayamkulam Faridabad

Total

3,955

Gas Based Joint Ventures: COAL BASED (Owned

by JVs) 1.

RGPPL

COMMISSIONED

STATE

CAPACITY

Maharashtra

1940

Total

1940

Hydro Based Power Projects (Under Implementation) NTPC has increased thrust on hydro development for a balanced portfolio for long term sustainability. The first step in this direction was taken by initiating investment in Koldam Hydro Electric Power Project located on Satluj river in Bilaspur district of Himachal Pradesh. Two other hydro projects under construction are Tapovan Vishnugad and Loharinag Pala. On all these projects construction activities are in full swing.

APPROVED

HYDRO BASED

STATE

1.

Koldam (HEPP)

Himachal Pradesh

800

2.

Loharinag Pala (HEPP)

Uttarakhand

600

Uttarakhand

520

3. Tapovan Vishnugad (HEPP) Total

CAPACITY(MW)

1,920

42

ChaPter-: 3 oBjeCtive aNd sCoPe of study

Objective of the sTUDY 43

The main objective is 1) To check the validity of employees and to maintain their backup in SAP

ERP. 2) To measure the effectiveness of services through SAP ERP that is offered

by NTPC in different departments.

3) To identify the changes in management after the implementation of SAP

ERP process.

4) To know if SAP ERP has reduced workload of employees and thus is an

efficient tool.

Scope of the sTUDY The project findings will help in 1) Validating the records of all the employees thus reducing the errors.

2) Maintaining a good and competitive environment among the employees

and also help in measuring the effectiveness of services through SAP ERP in NTPC. 3) Making better HR practices and proper management of workforce in the

organisation.

4) Improve the company at each level and give a competitive advantage over

the other companies that are into the power sector and ultimately to achieve the organisational goal.

44

ChaPter-: 4 theoretiCal CoNCePt

saP ag Profile

45

Overview SAP AG is the largest European software enterprise & the third largest in the world, with headquarters in Walldorf, Germany. It is best known for its SAP ERP Enterprise Resource Planning (ERP) software.

Originally the company was founded by five (5) prior IBM employees in 1972 who wanted to create a real-time business data system. The first name chosen for the company was not Systeme, Anwendungen und Produkte in der Datenverarbeitung (or SAP) but instead, what we know today as the company SAP was originally called Systemanalyse und Programmentwicklung or in English, Systems analysis and program development. The company name and the ERP software application name of SAP stands for Systems, Applications and Products (Systeme, Anwendungen und 46

Produkte in der Datenverarbeitung, in the original German) in Data Processing. It uses the concept of modules ("individual programs that can be purchased, installed, and run separately, but that all extract data from the common database"). SAP AG, the company that provides the enterprise resource planning solution has upgraded the package and launched it as SAP ECC 6.0 in 2005. ECC stands for ERP Central Component. The purpose of positioning it as ECC is to enable SAP to build and develop an environment of other products that can function upon the foundation of the central component.

SAP is a world market leader in E-Business applications, modernizing business and government operations worldwide, making them more efficient.  Over 21,000 businesses and government worldwide customers.  The US government is SAP’s largest customer including; NASA, GSA, DOJ, DOT, DHS (customs), army, DLA, NAVY and treasury.  More than 20% of SAP revenue is reinvested into research & development activities.

SAP's products focus on Enterprise Resource Planning (ERP). The company's main product is SAP ERP. The current version is SAP ERP 6.0 & is part of the SAP Business Suite. Its previous name was called R/3. The "R" of SAP R/3 stood for real time even though it is not a real-time solution. The number 3 related to the 3-tier architecture: database, application server & client (SAPgui).

Other products are: •

Relationship Management (SAP SRM)

•

SAP Product Lifecycle Management (SAP PLM)

•

SAP NetWeaver

•

SAP Business One

•

SAP Business ByDesign

•

SAP Business All-in-One

47

SAP BUSINESS SUITE MANAGE

A

LEAN

ENTERPRISE,

LEVERAGE

CUSTOMER

COMMUNITIES, AND OPTIMIZE BUSINESS MODELS FOR GROWTH Integrated enterprise applications delivered with SAP Business Suite software enable enterprises to execute and optimize business and IT strategies. SAP Business Suite enables to perform essential, industry-specific, and business-support processes with modular solutions that are designed to work with other SAP and non-SAP software.

Organizations and departments in all industries can deploy these business applications in a step-wise manner to address specific business challenges on their own timelines and without costly upgrades. These business applications provide better insight and visibility across organizations, improve operational efficiency and effectiveness, and increase flexibility to address business change.

You can incrementally adapt and tailor SAP Business Suite applications through enhancement packages that alleviate the need for costly and time-consuming upgrades. SAP Business Suite applications increase visibility across departments and business silos - improving your ability to make clear business decisions and eliminating process bottlenecks.

Services-Enabled Business Applications Built on an open, service-oriented architecture (SOA) - and powered by the SAP NetWeaver technology platform, SAP Business Suite applications offer companies the opportunity to develop practices for greater differentiation and to integrate business processes that enable companies to compete more effectively in the respective industry.

SAP Enterprise Support SAP Enterprise Support services help reduce the total cost of ownership of SAP Business Suite applications with integrated life-cycle management capabilities. The holistic support offering accelerates innovation and decreases implementation cycles

48

by providing experts, tools, and best practices that simplify testing, reduce customization effort, and control operational risk and cost.

SAP Business Suite software provides best industry practices with industry-specific applications and the core applications of SAP Business Suite: •

SAP Customer Relationship Management

•

SAP ERP (enterprise resource planning)

•

SAP Product Lifecycle Management

•

SAP Supply Chain Management

•

SAP Supplier Relationship Management

SAP BUSINESS SUITE BUSINESS BENEFITS Your company and employees can gain these and additional benefits using applications in SAP Business Suite: •

Enhanced visibility, insight, and decision making – SAP Business Suite applications help you improve visibility into operations and provide one version of business information for improved decision making. By connecting operations with strategy, your company can create and align plans, budgets, and operational reports across organizations and for all business processes.

•

Improved efficiency across mission-critical processes – With extended endto-end processes, SAP Business Suite applications can help you increase process integrity and increase business and IT efficiency. The applications encourage collaboration within and across company boundaries, so you can use supply chain and sales information from suppliers, distributors, retailers, and customers to improve operations.

•

Increased flexibility for innovation and expansion – SAP Business Suite applications are service-enabled. That means you can innovate and add 49

functionality to the software as needed. Enhancement packages replace upgrades to help you innovate and expand without disrupting business. You can compose and design new processes, implement individual applications according to budget and scope, and integrate non-SAP solutions that address niche needs.

Proven, comprehensive support for a long-term competitive edge – SAP is committed to continually enhancing the applications in SAP Business Suite so that they remain the ideal choices for maintaining competitive agility, and attaining operational excellence for large and midsize organizations. Drawing on decades of SAP's real-world experiences across a wide range of industries, the applications can help you create a highly responsive enterprise that flexibly addresses new marketplace demands, satisfies your customer base, and maintains your competitive advantage over the long term.

ERP SOFTWARE FROM SAP A FOUNDATION TO EXECUTE YOUR BUSINESS STRATEGY A sound foundation is necessary to compete and win in the global marketplace. The SAP ERP application supports the essential functions of your business processes and operations efficiently and is tailored to specific needs of your industry.

SAP ERP, an application included in SAP Business Suite software, delivers these solutions: •

SAP ERP Financials

•

SAP ERP Human Capital Management

•

SAP ERP Operations

•

SAP ERP Corporate Services

For current customers, SAP enhancement packages now offer you the benefit of improving and extending your SAP ERP software without the cost of major upgrades.

For example, you can leverage SAP Master Data Governance – delivered via an SAP 50

enhancement package – to help govern financial master data used in consolidation and operational chart of accounts. Tap into the interactive SAP ERP Community to keep up with the latest SAP ERP enhancements and key topics.

Financials Meet today's challenges in finance with industry-leading financial management software in SAP ERP Financials. Complete, industry-specific, scalable and global – SAP ERP Financials enables your teams to address changing financial reporting standards, improve cash flow, and manage financial risks.

Support your strategic business activities with these features and functions: •

Financial and management accounting – Improve confidence in financial reporting.

•

Financial supply chain management – Streamline customer-to-cash processes and improve control of cash flow.

•

Treasury applications – Hedge financial risk and comply with accounting standards.

Human Capital Management Optimize your HR processes with a complete, integrated, and global human capital management solution: SAP ERP Human Capital Management (SAP ERP HCM).

With SAP ERP HCM, you get the help you need to attract the right people, develop and leverage their talents, align their efforts with corporate objectives, and retain top performers.

To increase HCM efficiencies, SAP ERP HCM automates these key processes: •

End-user service delivery – Deliver multiple options of ERP services along with business content to your entire organization and beyond.

•

Workforce analytics – Gain real-time insight into your workforce to manage your human capital more effectively, and track costs and ROI associated with HR projects.

51

•

Talent management – Support people through every phase of their employment, from recruitment through training, development, and retention.

•

Workforce process management – Streamline and integrate essential workforce processes on a global platform.

•

Workforce deployment – Deploy the right people based on skills and availability, monitor scheduling and progress on projects, track time, and analyze results for strategic decision making.

Operations For many organizations, the SAP ERP Operations solution is the software backbone that contributes to achieve operational excellence in key business areas, including procurement and logistics execution, product development and manufacturing, and sales and service. With SAP ERP Operations, you can streamline your day-to-day operations to reduce costs, increase revenues, maximize profitability, and improve customer service – all key benefits to sustain your competitive advantage.

SAP ERP Operations can help you simplify, automate, and innovate the processes of your key operations: •

Procurement and logistics execution – Manage end-to-end procurement and logistics business processes for complete business cycles, from self-service requisitioning to flexible invoicing and payment. SAP ERP Operations can also help optimize the physical flow of materials.

•

Product development and manufacturing – Support the entire life cycle of product development and manufacturing. You can perform production planning, manufacturing

execution

integrated

with

shop-floor

systems,

product

development, and life-cycle data management in a wide variety of industries.

•

Sales and service – Manage customer-focused activities, from selling products and services, to managing professional-services delivery and internal processes such as calculating incentives and commissions

52

Corporate Services With the SAP ERP Corporate Services solution, your company can manage real estate; enterprise assets; project portfolios; corporate travel; environment, health, and safety compliance; quality; and global trade services more effectively. SAP ERP Corporate Services can help you realize meaningful business value in: •

Real estate management – Avoid vacancies and reduce costs associated with real estate development, rentals, and property management.

•

Enterprise asset management – Manage preventive and predictive maintenance, maintenance cost budgeting, maintenance execution, and workclearance management.

•

Project and portfolio management – Manage a portfolio of projects – from strategic portfolio management to project planning, execution, and accounting.

•

Travel management – Reduce costs, streamline travel administration processes, monitor compliance with travel policies, and manage changes in compensation and pricing models from suppliers, global distribution systems, and travel agencies.

•

Environment, health, and safety management – Implement EHS strategies on local and global levels. The SAP Environment, Health, and Safety Management (SAP EHS Management) application not only empowers you to address regulatory compliance, but also to take an integrated approach to managing operational risks related to environment, health, and safety, and to address the needs of corporate sustainability initiatives.

•

Quality management – Gain a unified approach to total quality management, delivering efficiencies that result from fewer product returns and improved asset utilization.

•

Global trade services – Secure your global supply chain, connect and communicate with government systems, and promote the use of shared data to streamline cross-border trade and gain sustainable competitive advantage.

53

Source: www.google.com

Figure: 4.1

SAP ERP BUSINESS BENEFITS SAP ERP delivers a comprehensive set of integrated, cross-functional business processes. With SAP ERP, you can gain the following benefits:

•

Improve alignment of strategies and operations o

Run your enterprise in accordance with strategy and plans, accessing the right information in real time to identify concerns early.

o

Pursue opportunities proactively.

o

Achieve corporate objectives by aligning workforce and organizational objectives.

54

o

Find the best people and leverage their talent in the right job at the right time.

•

Improve productivity and insight o

Leverage self-services and analytics across your organization.

o

Improve operational efficiency and productivity within and beyond your enterprise.

•

Reduce costs through increased flexibility o

Use

enterprise

services

architecture

to

improve

process

standardization, efficiency, and adaptability. o

Extend transactions, information, and collaboration functions to a broad business community.

•

Support changing industry requirements o Take advantage of the SAP NetWeaver platform's latest open, Webbased technology to integrate your end-to-end processes seamlessly

•

Reduce risk o

Solve complex business challenges today with SAP, your trusted partner for long-term growth, with 30 years of experience working with organizations of all sizes in more countries than any other vendor.

o

Join SAP's world-class partner network, uniquely qualified to support the best business practices in more than 25 industries.

•

Improve financial management and corporate governance o

Gain deep visibility into your organization with financial and management accounting functionality combined with business analytics.

o

Increase profitability, improve financial control, and manage risk.

55

•

Optimize IT spending o

Integrate and optimize business processes.

o

Eliminate high integration costs and the need to purchase third-party software.

o

Deploy other SAP Business Suite applications incrementally to improve cash flow and reduce costly borrowing.

•

Gain higher ROI faster o

Install SAP ERP using rapid-implementation techniques that cost less than half what traditional approaches cost.

o

Leverage preset defaults and pre-packaged versions available for specific industries.

•

Retain top performers o

Retain your top performers through clearly defined career and development plans.

o

Link employees' performance to compensation programs such as variable pay plans and long-term incentives.

•

Provide immediate access to enterprise information o

Give employees new ways to access the enterprise information required for their daily activities.

The evolution of mySAP ERP SAP R/3 through version 4.6c consisted of various applications on top of SAP Basis, SAP's set of middleware programs and tools.

56

When SAP R/3 Enterprise was launched in 2002, all applications were built on top of the SAP Web Application Server. Extension sets were used to deliver new features and kept the core as stable as possible. The Web Application Server contained all the capabilities of SAP Basis.

As a result of marketing changes and changes in the industry, other versions of SAP have been released that address these changes. The first edition of mySAP ERP was launched in 2003 and bundled previously separate products, including SAP R/3 Enterprise, SAP Strategic Enterprise Management (SEM) and extension sets. The SAP Web Application Server was wrapped into NetWeaver, which was also introduced in 2003.

A complete architecture change took place with the introduction of mySAP ERP edition 2004. R/3 Enterprise was replaced with the introduction of ERP Central Component (SAP ECC). The SAP Business Warehouse, SAP Strategic Enterprise Management and Internet Transaction Server were also merged into SAP ECC, allowing users to run them under one instance. Architectural changes were also made to support enterprise services architecture to transition customers to a servicesoriented architecture.

Best Practice Using SAP ERP Anderegg (2000) described SAP ERP as a highly integrated, complex system for businesses. SAP ERP consists of several modules including; utilities for marketing and sales, field service, product design and development, production and inventory control, human resources, finance and accounting. SAP ERP collects and combines all the data from the several modules and provides the company or organization with solutions to problems and also gives the business a competitive advantage.

Some American companies, such as; Hersheys, JoAnne stores, Whirlpool and Samsonite who have suffered through company disasters claim that software packages like SAP ERP have the capabilities of preventing financial and business disaster. SAP ERP is widely used software with over 20,000 customers running the SAP ERP program today.

57

Although there can be major benefits for customers of SAP ERP, the implementation and training cost are expensive. The promises of potential benefits of SAP ERP software package are appealing to many businesses and organizations.

Many companies experience some problems when implementing SAP ERP software, such as: failing to specify their operation objectives, unexistence of a strong commitment or positive approach to change, failing to deal with organizational differences, failing to plan the change to SAP ERP properly, inadequate testing. All these mentioned factors can be difference between having a successful implementation of SAP ERP or an unsuccessful one. If your implementation is unsuccessful you will end up exceeding your expenses and budget.

If SAP ERP is implemented correctly the benefits may be high, since an Entreprise can go from its old calculations system to a fully integrated software package. Some of the benefits may include: efficient business process, inventory reduction, leads time reduction, improved customer service and higher profitability.

A fully successful implementation of a SAP ERP system can enhance a business in many ways and help to give a company a competitive edge when it most needs it.

SAP ERP Human Capital Management Aligning Employees, Processes, and Strategies for Business Success The SAP ERP Human Capital Management solution offers a complete & integrated set of tools to help organization – regardless of industry or geographic location – more effectively manage company’s most important asset. Automation of core human resource processes, such as employee administration, legal reporting, payroll increases efficiency and supports compliance with changing global & local regulations. For e.g., organization can create project teams based on skills & availability, monitor their progress on specific projects, track the time they spend, and analyze the results. Equally important, integrated talent management functions in SAP ERP give HR managers insight into organizational talent to more effectively plan, acquire, educate, align, & retain the talent need to maximize the effectiveness of the organization. Identifying top performers and potential successors helps organization 58

minimizes disruption when executives and senior managers leave or retire. To compete effectively, one need to align all corporate resources – including employees – with business objectives. To do so, one need to transform traditional HR functions into a comprehensive program for human capital management (HCM). It maximizes the value of employees and integrates employees, processes, & strategies to support business goals. That's why you need SAP ERP Human Capital Management (SAP ERP HCM). The solution optimizes each employee's contribution by aligning employee skills, activities & incentives with business objectives and the strategies to reach them. It also provides tools to manage, measure, & reward individual and team contributions.SAP ERP HCM enables employees to maintain personal information & control administrative processes. So HR department can focus on value generating projects instead of administration.SAP ERP HCM supports payroll functions, regulatory requirements, integrates with existing business systems and can be customized to meet your requirements.

SAP ERP HCM provides integrated, enterprise wide functionality that: •

Streamlines HCM processes & seamlessly integrates them across global operations

•

Provides real-time access to information that accelerates workforce decisionmaking

•

Allows you to assign the right people to the right projects at the right time

•

Supports both employees & managers throughout the employee life cycle

•

Empowers employees to manage processes in a collaborative environment

Advantages and disadvantages of SAP ERP Advantages •

ERP allows easier global integration (Barriers of currency exchange rates, language, and culture can be bridged automatically)

•

Updates only need to be done once to be implemented company wide 59

•

Provides real-time information, reducing the possibility of redundancy errors

•

Creates a more efficient work environment making it easier for employees to do their job which leads to effectiveness

•

Vendors have past knowledge and expertise on how to best build and implement a system

Disadvantages •

Locked into relationship by contract and manageability with vendor - a contract can hold a company to the vendor until it expires and it can be unprofitable to switch vendors if switching costs are too high

•

Inflexibility- vendor packages may not fit a company's business model exactly and customization can be very expensive

•

Return on Investment may take too long to be profitable

•

SAP ERP implementations have a risk of project failure

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ChaNge maNagemeNt

Change management Change management is a systematic approach to dealing with change, both from the perspective of an organization and on the individual level. A somewhat ambiguous term, change management has at least three different aspects, including: adapting to change, controlling change, and effecting change. A proactive approach to dealing with change is at the core of all three aspects. For an organization, change management means defining and implementing procedures and/or technologies to deal with changes in the business environment and to profit from changing opportunities.

Successful adaptation to change is as crucial within an organization as it is in the natural world. Just like plants and animals, organizations and the individuals in them 61

inevitably encounter changing conditions that they are powerless to control. The more effectively you deal with change, the more likely you are to thrive. Adaptation might involve establishing a structured methodology for responding to changes in the business environment (such as a fluctuation in the economy, or a threat from a competitor) or establishing coping mechanisms for responding to changes in the workplace (such as new policies, or technologies).

Organizational Change Management Organizational change management takes into consideration both the processes and tools that managers use to make changes at an organizational level. Most organizations want change implemented with the least resistance and with the most buy-in as possible. For this to occur, change must be applied with a structured approach so that transition from one type of behaviour to another organization wide will be smooth.

Management's Role in the Organizational Change In most cases, management's first responsibility is to identify processes or behaviours that are not proficient and come up with new behaviours, processes, etc that are more effective within an organization. Once changes are identified, it is important for managers to estimate the impact that they will have to the organization and individual employee on many levels including technology, employee behaviour, work processes, etc.

At this point management should assess the employee's reaction to an implemented change and try to understand the reaction to it. In many cases, change can be extremely beneficial with lots of positives; however certain changes do sometimes produce a tremendous amount of resistance. It is the job of management to help support workers through the process of these changes, which are at times very difficult. The end result is that management must help employees accept change and help them become well adjusted and effective once these changes have been implemented.

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Change must involve the people - change must not be imposed upon the people Be wary of expressions like 'mindset change', and 'changing people's mindsets' or 'changing attitudes', because this language often indicates a tendency towards imposed or enforced change, and it implies strongly that the organization believes that its people currently have the 'wrong' mindset, which is never, ever, the case. If people are not approaching their tasks or the organization effectively, then the organization has the wrong mindset, not the people. Change such as new structures, policies, targets, acquisitions, disposals, re-locations, etc., all create new systems and environments, which need to be explained to people as early as possible, so that people's involvement in validating and refining the changes themselves can be obtained.

Whenever an organization imposes new things on people there will be difficulties.

Participation, involvement and open, early, full communication are the important factors.

Workshops are very useful processes to develop collective understanding, approaches, policies, methods, systems, ideas, etc. See the section on workshops on the website.

Staff surveys are a helpful way to repair damage and mistrust among staff - provided you allow people to complete them anonymously, and provided you publish and act on the findings.

Management training, empathy and facilitative capability are priority areas managers are crucial to the change process - they must enable and facilitate, not merely convey and implement policy from above, which does not work.

You cannot impose change - people and teams need to be empowered to find their own solutions and responses, with facilitation and support from managers, and tolerance and compassion from the leaders and executives. Management and leadership style and behavior are more important than clever process and policy.

Employees need to be able to trust the organization.

The leader must agree and work with these ideas, or change is likely to be very painful, and the best people will be lost in the process.

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Change management principles 1. At all times involve and agree support from people within system (system = environment, processes, culture, relationships, behaviors, etc., whether personal or organizational).

2. Understand where you/the organization is at the moment.

3. Understand where you want to be, when, why, and what the measures will be for having got there.

4. Plan development towards above No.3 in appropriate achievable measurable stages.

5. Communicate, involve, enable and facilitate involvement from people, as early and openly and as fully as is possible.

Change management Models John P Kotter's 'eight steps to successful change' American John P Kotter (b 1947) is a Harvard Business School professor and leading thinker and author on organizational change management. Kotter's highly regarded books 'Leading Change' (1995) and the follow-up 'The Heart of Change' (2002) describe a helpful model for understanding and managing change. Each stage acknowledges a key principle identified by Kotter relating to people's response and approach to change, in which people see, feel and then change.

Kotter's eight step change model can be summarized as: 1. Increase urgency - inspire people to move, make objectives real and relevant.

2. Build the guiding team - get the right people in place with the right emotional commitment, and the right mix of skills and levels.

3. Get the vision right - get the team to establish a simple vision and strategy, focus on emotional and creative aspects necessary to drive service and efficiency.

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4. Communicate for buy-in - Involve as many people as possible, communicate the essentials, simply, and to appeal and respond to people's needs. De-clutter communications - make technology work for you rather than against.

5. Empowers action - Remove obstacles, enable constructive feedback and lots of support from leaders - reward and recognize progress and achievements.

6. Create short-term wins - Set aims that are easy to achieve - in bite-size chunks. Manageable numbers of initiatives. Finish current stages before starting new ones.

7. Don't let up - Foster and encourage determination and persistence - ongoing change - encourage ongoing progress reporting - highlight achieved and future milestones.

8. Make change stick - Reinforce the value of successful change via recruitment, promotion, and new change leaders. Weave change into culture.

The ADKAR Model Change management has been developed over a period of time and one of the models that have played an influence in change management is the ADKAR model. ADKAR was a model developed by Prosci. In this model, there are five specific stages that must be realized in order for an organization or an individual to successfully change.

They include: •

Awareness - An individual or organization must know why a specific change or series of changes are needed.

•

Desire - Either the individual or organizational members must have the motivation and desire to participate in the called for change or changes.

•

Knowledge - Knowing why one must change is not enough; an individual or organization must know how to change.

•

Ability - Every individual and organization that truly wants to change must implement new skills and behaviours to make the necessary changes happen.

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•

Reinforcement - Individuals and organizations must be reinforced to sustain any changes making them the new behaviour, if not; an individual or organization will probably revert back to their old behaviour.

Lewin & Lippitt’s (3) three-step model Unfreezing the status quo •

creation of motivation to change

•

Present behavior/ attitudes must be disconfirmed

•

Discomfort/ disconfirmation will lead to anxiety to motivate a change

•

Create psychological safety for change

Approaches to Managing Organizational Change Moving to a new state •

Developing new attitudes and behavior

•

Identification with a role model, mentor or friend

•

Scanning the environment for information specially relative to one’s particular problem

Refreezing the change •

Stabilizing the changes

•

Allow testing of new attitudes and behavior

•

Team training better than individual training

Change Management Process

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Source: www.google.com

Figure: 4.2: Change Management Process

ERP (Enterprise Resource Planning)

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A set of applications that help manage and automate a business involving best practices, thereby improving the performance.ERP incorporates all elements of a business – finance, materials, maintenance, production, projects and marketing activities etc into a unified system that operates more effectively and efficiently.

ERP involves change 1) Change in processes 2) Change in roles & responsibilities 3) Change in organization’s working culture- Department to Process perspective 4) Change in attitude & mindset of people Change Management Strategy would focus on bringing about above changes in NTPC smoothly

Issues in ERP •

Head of Project (HOP), Head of Department (HOD) & Section heads must act as Change Agents in their areas and mobilize the people for this big change.

•

Functional people have a major role to play in the success of ERP.

•

ERP is business initiative – NOT IT initiative – and everybody's responsibility, IT is only the support backbone.

•

Implementation of ERP is project and requires considerable time management and effort.

•

NON Compliance / Deviation from ERP’s Best Practices should be avoided.

•

To successfully take an ERP system, organisation needs to change its “Working Culture”

Factors for success of ERP implementation 68

Figure: 4.3

Challenges in ERP implementation

Figure: 4.4

Roles & Responsibilities of Change Management 69

1) Change Agents •

Bring clarity on the purpose of ERP implementation

•

Create ownership in the locations for the SAP implementation

•

Bring awareness about positive aspects of change

•

Facilitate acceptance of the SAP system

•

Facilitate the benefit realization workshops

•

Ensure maintenance of the desired change

•

Key link between end users and project team

•

Help to address the concerns, apprehensions, issues of people at the locations

•

Update self on ERP Implementation

2) Process Owner •

Take ownership of the improved processes and give approval.

3) Head of Projects •

Act as driver to ensure effective implementation of ERP at their location.

•

Motivate all location people to adopt to the new way of working.

•

To ensure availability of infrastructure facilities in time.

•

To ensure completion of codification exercise well in time at their location.

•

To expedite data migration activities at their location.

4) Process Anchors •

To finalize the “To Be” processes to be implemented across the organization

•

To get involved with the integration testing of processes configured for implementation

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•

To get trained in the processes in their respective functions and train others

Forces for successful change management Successful management of change needs four forces to drive the change. These are:

Top-down Top-down commitment and and commitment direction direction

Leadership

Navigation

Successful Change Management

Coordinated change plan

Bottom-up Bottom-up involvement and and involvement buy-in buy-in

Ownership

Visible changes in ways of working Enablement

Figure: 4.5

Today, people are the most important assets in by any business, and managing employees with SAP HR properly is important for growing the top and bottom line, becoming more productive, and achieving competitive advantage in the marketplace.

Information technology alone can't achieve those goals, but it can set you on the path to proper asset management in the human resources arena.

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ProjeCt laKshya iN NtPC

LAKSHYA Mission 72

To make every employee in NTPC information enabled by providing holistic and integrated business approach through speedy implementation of enterprise wide, stateof-the art, comprehensive, centralized and integrated solution, thereby supporting NTPC’s Vision of being a world class power major.

Project Objectives Liaise

with the Operations Core Team to promote best practice and processes for

ensuring effective operation of the business applications.

Actively work together as a unit, to ensure all aspects of the project management, fit for purpose.

Keep project to time and quality.

Suitably

ensure that the desired outcome of the specified programme meets the

expectations and business requirements of NTPC.

Help the Core Team to build upon their knowledge & their specific area of expertise of the RWE products and subsequent support capabilities.

Year-on-year SLA’s are appropriately adhered to & delivered to the satisfaction of the customer.

Ascertain the business requirements at an early stage.

Implementation of SAP ERP (Project LAKSHYA) NTPC Ltd has mandated German business software major SAP AG for the implementation of an enterprise resource planning (ERP) package. While the move is broadly aimed at overall operational efficiency improvement, it comes in the wake of critical fuel shortages that some of NTPC's stations had to face in year 2006, which 73

was finally mitigated through coal imports and resulted in some loss in generation.

NTPC, a thermal power generating company, has gone live on SAP ERP implementation. Titled project 'Lakshya', the pilot implementation of the project at Ramagundam, Faridabad, Koldam, NCR HQ and Corporate were completed on schedule, in a span of 10 months.

The contract for “Procurement of ERP and its Implementation” has been awarded to SAP India on 2nd May’2006 with Siemens Information Systems Limited (SISL) as their implementation Partner.

According to R.S. Sharma, chairman and managing director, NTPC, "Given the large scale of NTPC’s operations and the complexity of our structure, we wanted to implement a business software solution that would establish uniform business processes, better decision support and better control over operations."

The SAP solution is expected to help NTPC achieve improved exchange of information, productivity & reduction of costs, better data consistency, knowledge sharing and unification of planning & budgeting process.

NTPC will use applications from the SAP for utilities solution portfolio including wall-to-wall implementation of the core SAP ERP, IS-U, Business Analytics, SEM, SRM, Enterprise Portal and C-Folders for project-based collaborations across all locations of NTPC.

Importance of Lakshya in NTPC To power business needs and facilitate collaboration Implementing of ERP system has become one of the best practices of modern management techniques. Also with the company undergoing a makeover from a purely thermal generation utility to an integrated energy firm, organizational efficiency & better coordination across newly diversified businesses is expected to be honed through the implementation of the ERP. The ERP project called `LAKSHYA’ is likely to impart a cutting edge to the Company in terms of efficiency, flexibility of functioning, transparency, and quicker response to internal and external stakeholders.

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Project DISHA NTPC is a well-known power corporation serving people since 1975. The company has entered into Hydro sector and plans to enter nuclear power soon. To match its growth plans, the company needed to have uniform processes throughout the organization, irrespective of the location and area it belongs to, providing seamless integration among all its processes with one view of the company as a whole.

To achieve this, NTPC started ‘Project Disha!! Organizational Transformation’ which aimed at implementing SAP at its all locations. All major functions of NTPC such as Planning, Project Mgmt, vendor mgmt; financial accounting; invoicing etc, are done through this. The project aims at shortening cycle time, procurement lead time, realization cycle, account closure time, etc. It is also expected to provide better mgmt & mobilization of diversified workforce and online visibility of status on sales, inventory, receivables with improved search facility. To ensure that implementation works smoothly at all locations NTPC deployed MPLS-VPN through BSNL. During implementation, change mgmt and user training were the two major challenges faced.

Disha led to use of standardized processes throughout NTPC with seamless integration. It has also resulted in effective use of manpower.

Project Disha is a comprehensive organization transformation project with a view to positioning the NTPC as a globally comparable utility, aligned with global best practices in various areas of its processes and functions. The project is focused on important areas, such as core business strategy, portfolio diversification, globalization, services business model, IT strategy, structural initiatives, planning process, unit level processes (maintenance, procurement and inventory), engineering initiatives, project planning and execution, performance management system, rewards and incentives, career development system and knowledge management system.

NTPC has implemented SAP to bring all functions of the organization under one roof with uniformity in all processes throughout the organization.

Objective of project Disha

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•

To position NTPC as a premier and competitive power utility of international standards

•

To maximize the value of NTPC’s equity

Screens Shots for SAP HR Modules There are different modules in SAP-ERP such as:•

FI – Finance

•

CO – Controlling

•

MM – Material Management

•

PS – Project System

•

PM – Plant Maintenance

•

QM – Quality Management

•

SRM – Supplier Relationship Management

•

PP – Production Planning

•

SD – Sales & Distribution

•

LDM – Lifecycle Data Management

•

IS-U – Industry Solution - Utilities

•

HCM – Human Capital Management

•

BW – Business Warehouse

•

BPS – Business Planning & Simulation

•

KM – Knowledge Management

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Some of the screenshots of HR module - ESS (Employee Self Service) are:-

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ChaPter-: 5 researCh methodology

Research mETHODOLOGY Research methodology PROBLEM .

IT

IS A WAY TO SYSTEMATICALLY SOLVE THE RESEARCH

MAY BE UNDERSTOOD AS A SCIENCE OF STUDYING HOW

RESEARCH IS DONE SCIENTIFICALLY .

IN

IT WE STUDY THE VARIOUS STEPS

THAT ARE GENERALLY ADOPTED BY A RESEARCHER IN STUDYING HIS/HER RESEARCH PROBLEM ALONG WITH THE LOGIC BEHIND THEM.

The methodology that is follOWED

TO PREPARE THIS PROJECT IS BASED ON THE

CONCEPT OF PRELIMINARY INVESTIGATIONS THAT ARE GATHERED DIRECTLY

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FROM THE COMPANY ’S EMPLOYEES AND THE DATA THAT IS EASILY AVAILABLE ON THE INTERNET .

Primary data collection The primary data is the information which is collected for the first time and thus happens to be original in character. It is obtained through observation and through direct communication with the respondents. IT DATA THROUGH QUESTIONNAIRES .

THE

INCLUDES THE COLLECTION OF

PRIMARY DATA FOR THE REPORT HAS

BEEN COLLECTED THROUGH THE FOLLOWING TOOLS LIKE:

•

Face to face interview with the employees of the organisation

•

The survey was done through the help of questionnaire

 THE

FACTS WERE GATHERED FROM THE PRIMARY DATA AS FAR AS

POSSIBLE TO PREVENT THE OUTCOME BEING GUIDED BY THE COMPANY BIASES

Secondary data collection The secondary data is the information which is already available, i.e. they refer to the data, which has already been collected and analysed by someone else. The secondary data for the thesis is collected through the following tools like: •

Company websites

•

Journals and magazines (Vindhya Sandesh and News Flash)

•

EMPLOYEE HANDBOOK

 ANALYZING

AND INTERPRETING THE DATA BY APPLYING VARIOUS

ANALYTICAL TOOLS LIKE GRAPHICAL METHODS SUCH AS BAR CHARTS HAVE BEEN USED .

Sampling method

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The sampling method used in the research process is SIMPLE RANDOM SAMPLING .

RANDOM

SAMPLING IS ALSO KNOWN AS ‘PROBABILITY SAMPLING ’ OR ‘CHANCE

SAMPLING ’. IN SIMPLE RANDOM SAMPLING EACH ELEMENT IN THE SAMPLE IS SELECTED INDEPENDENT OF THE OTHER ELEMENT .

EACH

ELEMENT HAS A

KNOWN AND EQUAL PROBABILITY OF SELECTION AND MOREOVER EACH SAMPLE OF THE GIVEN SIZE HAS AN EQUAL AND KNOWN PROBABILITY OF BEING ACTUALLY SELECTED .

EASILY UNDERSTOOD .

REGULARITY

S IMPLE

RANDOM

RANDOM SAMPLING IS SIMPLE AND

SAMPLING ENSURE THE LAW OF

STATISTICAL

WHICH STATES THAT IF ON AN AVERAGE THE SAMPLE CHOSEN IS

A RANDOM ONE, THE SAMPLE WILL HAVE THE SAME COMPOSITION AND CHARACTERISTICS AS THE UNIVERSE .

THIS

IS THE REASON WHY RANDOM

SAMPLING

BEST

TECHNIQUE

IS

CONSIDERED

AS

THE

OF

SELECTING

A

REPRESENTATIVE SAMPLE .

Sample Size Sample size refers to the number of items to be selected from the universe to constitute a sample. The size of sample should neither be excessively large, nor too small. It should be optimum. An optimum sample is one which fulfils the requirements of efficiency, representativeness, reliability and flexibility. The sample size selected for the survey is 150

EMPLOYEES .

ONE

QUESTIONNAIRE WAS

GIVEN TO EVERY EMPLOYEE AND AFTER DISCUSSION AND TAKING THEIR OPINION ;

I HAVE ANALYZED

THEM CAREFULLY AND CONCLUDED THE RESULT .

Scaling Technique Scaling describes the procedures of assigning numbers to various degrees of opinion, attitude and other concepts. This can be done by constructing questionnaire in such a way that the score of individual’s responses assigns him a place on a scale. Here a scale is a continuum, consisting of the highest point (in terms of some characteristic e.g.,

PREFERENCE , FAVOURABLENESS , ETC.) AND THE LOWEST POINT ALONG

WITH

SEVERAL

INTERMEDIATE

POINTS

POINTS .

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BETWEEN

THESE

TWO

EXTREME

The

SCALING TECHNIQUE USED IN THE QUESTIONNAIRE IS

LIKERT SCALE ,

LIKERT SCALE . IN

RESPONDENT IS REQUIRED TO INDICATE DEGREE OF AGREEMENT

OR DISAGREEMENT WITH EACH OF THE SERIES OF STATEMENTS ABOUT THE STIMULUS

OBJECTS .

EACH

SCALE

HAS

5

CATEGORIES

FROM

“STRONGLY

DISAGREE ” TO “STRONGLY AGREE”.

Analytical Tool The data has been analysed and interpreted through analytical tool like graphical method such as BAR CHART. A bar chart or bar graph is a chart with rectangular bars with lengths proportional to the values that they represent. The bars can also be plotted horizontally.

Bar charts are used for plotting discrete (or 'discontinuous') data i.e. data which has discrete values and is not continuous. Some examples of discontinuous data include 'shoe size' or 'eye colour', for which you would use a bar chart. In contrast, some examples of continuous data would be 'height' or 'weight'. A bar chart is very useful if you are trying to record certain information whether it is continuous or not continuous data.

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ChaPter-: 6 data aNalysis aNd iNterPretati0N

1) Based on the responses on whether the employees have been provided adequate training or not, following graph is drawn.

Out of 150 employees, Strongly agree- 14 83

Agree- 42 Neither agree nor disagree- 21 Disagree- 28 Strongly disagree- 45 50 45 40 35 30 25 20 15 10 5 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.1

Interpretation: From the above graph it can be inferred that out of 150 employees, 56 employees agree that adequate training has been provided but 73 employees disagree with this point. They strongly believe that more training sessions are still required on regular basis as ERP software has very vast applications.

2) Based on the responses on whether the paper work is actually reduced or not, following graph is drawn.

Out of 150 employees, Strongly agree- 25 Agree- 57 84

Neither agree nor disagree- 20 Disagree- 34 Strongly disagree- 14 60 50 40 30 20 10 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.2

Interpretation: From the above graph it can be inferred that out of 100 employees, 82 employees agree that paper work has been reduced but 48 employees are not satisfied with this point. They still believe that in spite of the fact that all the work has been made computerized but still in many cases hardcopy proof is needed like that for receipts, approval, etc. So in this case we can infer that paper work is still there. Thus after the implementation of SAP ERP process in NTPC, paper work is reduced but up to some extent only because still in some departments paper work is not reduced.

3) Based on the responses on whether the productivity has increased or not, following graph is drawn.

Out of 150 employees, Strongly agree- 22 Agree- 54 Neither agree nor disagree- 52 85

Disagree- 17 Strongly disagree- 5 60 50 40 30 20 10 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.3

Interpretation: From the above graph it can be inferred that out of 150 employees, 76 employees agree that productivity has increased but 22 employees are not satisfied with this point.

4) Based on the responses on whether SAP ERP has integrated all departments or not, following graph is drawn.

Out of 150 employees, Strongly agree- 33 Agree- 82 Neither agree nor disagree- 27 86

Disagree- 6 Strongly disagree- 2 90 80 70 60 50 40 30 20 10 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.4

Interpretation: From the above graph it can be inferred that out of 150 employees, 115 employees agree that it has integrated all departments but 8 employees are not satisfied with this point. So, it is strongly supported that it helps integrate all departments and makes work easier.

5) Based on the responses on whether it has reduced time and provides faster delivery of services or not, following graph is drawn.

Out of 150 employees, Strongly agree- 36 Agree- 61 Neither agree nor disagree- 35 Disagree- 9 87

Strongly disagree- 9 70 60 50 40 30 20 10 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.5

Interpretation: From the above graph it can be inferred that out of 150 employees, 97 employees agree that it has reduced time and provides faster delivery of services but 18 employees are not satisfied with this point.

6) Based on the responses on whether it has increased customer satisfaction or not, following graph is drawn.

Out of 150 employees, Strongly agree- 30 Agree- 52 Neither agree nor disagree- 54 Disagree- 11 Strongly disagree- 3 88

60 50 40 30 20 10 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.6

Interpretation: From the above graph it can be inferred that out of 150 employees, 82 employees agree that it has increased customer satisfaction but 14 employees are not satisfied with this point.

7) Based on the responses on whether it has reduced workload of employees or not, following graph is drawn.

Out of 150 employees, Strongly agree- 18 Agree- 51 Neither agree nor disagree- 36 Disagree- 33 Strongly disagree- 12 89

60 50 40 30 20 10 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.7

Interpretation: From the above graph it can be inferred that out of 150 employees, 69 employees agree that their workload has been reduced but 45 employees are not satisfied with this point.

8) Based on the responses on whether the chances of error has been reduced or not, following graph is drawn.

Out of 150 employees, Strongly agree- 28 Agree- 78 Neither agree nor disagree- 33 Disagree- 9 Strongly disagree- 2

90

90 80 70 60 50 40 30 20 10 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.8 Interpretation: From the above graph it can be inferred that out of 150 employees, 106 employees agree that chances of error has been reduced but 11 employees are not satisfied with this point.

9) Based on the responses on whether it has increased efficiency of employees or not, following graph is drawn.

Out of 150 employees, Strongly agree- 23 Agree- 88 Neither agree nor disagree- 24 Disagree- 9 Strongly disagree- 6

91

100 90 80 70 60 50 40 30 20 10 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.9

Interpretation: From the above graph it can be inferred that out of 150 employees, 111 employees agree that it has increased efficiency of employees but 15 employees are not satisfied with this point.

10) Based on the responses on whether SAP ERP helps in better compliance with changing global and local regulations or not, following graph is drawn.

Out of 150 employees, Strongly agree- 23 Agree- 88 Neither agree nor disagree- 31 Disagree- 6 Strongly disagree- 2

92

100 90 80 70 60 50 40 30 20 10 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.10

Interpretation: From the above graph it can be inferred that out of 150 employees, 111 employees agree that SAP ERP helps in better compliance with changing global and local regulations but 8 employees are not satisfied with this point.

11) Based on the responses on whether SAP ERP is more helpful and convenient than the older system or not, following graph is drawn.

Out of 150 employees, Strongly agree- 27 Agree- 73 Neither agree nor disagree- 31 Disagree- 14 Strongly disagree- 5

93

80 70 60 50 40 30 20 10 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.11

Interpretation: From the above graph it can be inferred that out of 150 employees, 100 employees agree that SAP ERP is more helpful and convenient than the older system but 19 employees are not satisfied with this point.

12) Based on the responses on whether SAP ERP services are available as and when required or not, following graph is drawn.

Out of 150 employees, Strongly agree- 11 Agree- 78 Neither agree nor disagree- 40 Disagree- 15 Strongly disagree- 6

94

90 80 70 60 50 40 30 20 10 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.12

Interpretation: From the above graph it can be inferred that out of 150 employees, 89 employees agree that SAP ERP services are available as and when required but 21 employees are not satisfied with this point.

13) Based on the responses on whether it speeds up transaction process or not, following graph is drawn.

Out of 150 employees, Strongly agree- 26 Agree- 88 Neither agree nor disagree- 18 Disagree- 15 Strongly disagree- 3

95

100 90 80 70 60 50 40 30 20 10 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.13

Interpretation: From the above graph it can be inferred that out of 150 employees, 114 employees agree that it speeds up transaction process but 18 employees are not satisfied with this point.

14) Based on the responses on whether it helps in decision making or not, following graph is drawn.

Out of 150 employees, Strongly agree- 20 Agree- 52 Neither agree nor disagree- 57 Disagree- 15 Strongly disagree- 6 96

60 50 40 30 20 10 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.14

Interpretation: From the above graph it can be inferred that out of 150 employees, 72 employees agree that it helps in decision making process but 21 employees are not satisfied with this point.

15) Based on the responses on whether the employees are aware of the uses of Application Tracker in SAP ERP or not, following graph is drawn.

Out of 150 employees, Strongly agree- 31 Agree- 76 Neither agree nor disagree- 18 Disagree- 20 Strongly disagree- 5 97

80 70 60 50 40 30 20 10 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.15

Interpretation: From the above graph it can be inferred that out of 150 employees, 107 employees agree that they are aware of the uses of Application Tracker in SAP ERP but 25 employees disagree with this point. SAP ERP process greatly helps in addressing the complaints of employees without any delay as Application Tracker acts as an efficient tool in this regard.

16) Based on the responses on whether the employees adapted quickly to the changing environment or not, following graph is drawn.

Out of 150 employees, Strongly agree- 12 Agree- 25 Neither agree nor disagree- 54 Disagree- 51 Strongly disagree- 8 98

60 50 40 30 20 10 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.16

Interpretation: From the above graph it can be inferred that out of 150 employees, 37 employees agree that employees adapted quickly to the changing environment but 59 employees are not satisfied with this point. Most of them believe that it takes some time to adapt to the changing environment.

17) Based on the responses on whether SAP ERP systems and processes are user friendly or not, following graph is drawn.

Out of 150 employees, Strongly agree- 11 Agree- 85 Neither agree nor disagree- 34 Disagree- 12 Strongly disagree- 8

99

90 80 70 60 50 40 30 20 10 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.17

Interpretation: From the above graph it can be inferred that out of 150 employees, 96 employees agree that SAP ERP system and processes are user friendly but 20 employees are not satisfied with this point.

18) Based on the responses on whether SAP ERP maximizes transparency and control of the organisation or not, following graph is drawn.

Out of 150 employees, Strongly agree- 36 Agree- 69 Neither agree nor disagree- 40 Disagree- 5 Strongly disagree- 0

100

80 70 60 50 40 30 20 10 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.18

Interpretation: From the above graph it can be inferred that out of 150 employees, 105 employees agree that it maximizes transparency and control of the organisation but 5 employees are not satisfied with this point.

19) Based on the responses on whether SAP ERP has standardized business or not, following graph is drawn.

Out of 150 employees, Strongly agree- 31 Agree- 66 Neither agree nor disagree- 46 Disagree- 5 Strongly disagree- 2

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70 60 50 40 30 20 10 0 strongly agree

agree

neither agree nor disagree

disagree

strongly disagree

Figure: 6.19

Interpretation: From the above graph it can be inferred that out of 150 employees, 97 employees agree that it has standardized business but 7 employees are not satisfied with this point.

ChaPter-: 7 102

CoNClusioN

aNd

r eCommeNdati oNs

CONCLUSION This project report attempted to answer the following question: “How effective are the services through SAP ERP process in HR departments?” Through an analysis, it was determined that:

 After the implementation of SAP ERP process in NTPC, employees feel that more training sessions are required as ERP software has very vast applications.  After the implementation of SAP ERP process in NTPC, paper work is not eliminated but has been reduced up to some extent.  After the introduction of SAP ERP productivity has increased.  SAP ERP has reduced workload of employees.  SAP ERP system is better than the older system as it is more user friendly and has integrated all departments thus making work easier.  Understanding of SAP ERP process helps in decision making.  Employees do not adapt quickly to the changing business environment of SAP ERP. It takes some time to adjust to new environment.

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 SAP ERP process increases the customer satisfaction because of quicker response and faster delivery of services without any delay.  SAP ERP process greatly helps in addressing the complaints of employees without any delay as Application Tracker acts as an efficient tool in this regard.

A cautious, evolutionary, bureaucratic implementation process backed with careful change management, network relationships and cultural readiness can lead to successful ERP implementations. An ERP implementation is not simply a large IT implementation project- it is a sizable organizational project. Organizational benefits will not be achieved if the enterprise focuses on the technical aspects only.

Information technologies cannot by itself influence the productivity of a company.

The main efficiency factor lies in the way people use these technologies. Many information strategies fail for ignoring this issue.

RECOMMENDATIONS Following suggestions were made to improve the effectiveness of SAP ERP process: 1) Required level of training should be given to employees. Training must stress the need for more disciplined work habits and make it clear that even simple mistakes can create consequences in other areas. Regular training should be a strong feature.

2) More training sessions should be given to employees regarding SAP ERP process as it has very vast applications. Everyone must become familiar with new roles, revised processes, and new control mechanisms.

3) Reports and returns as well as query system need to be strengthened.

4) Training regarding Application Tracker should be given since it works as a window to get the correct status of processing of forms applied in the SAP ERP process such as reimbursement, advances & allowances.

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5) Feedback of the users of SAP ERP process should be addressed properly through training sessions.

6) Overall training sessions & workshops should be provided on quarterly basis to the SAP ERP process owners of each department.

7) Process owners should be made aware of the new updating in SAP ERP process at regular basis either through mails or workshops, whichever is required.

8) Top management should formulate some guidelines on how to reduce the paperwork.

9) Along with Entry facility, Approval facility should also be provided in the SAP ERP process so as to reduce the paper-work to some extent.

Example- In case of claim of the Medical bill, hard copy is taken of all the receipts and forwarded to the TOP MANAGEMENT for the approval, then again it is returned to the process owners for its entry in the SAP ERP process. Then again the hard copy of that entry is attached to the previous documents and is forwarded to the Finance Management for further process.

So, instead of forwarding the hard copy of the receipts to the TOP MANAGEMENT if there has been an approval facility in the SAP ERP process, then this extra paperwork would have been reduced to a great extent and in addition, the processing of documents will take less time than usual.

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ChaPter-: 8 limitatioN s

of the

study

LimitationS OF THE STUDY The report has been prepared on the basis of data which is collected through employee’s face to face interview, with the help of questionnaire and through secondary sources.

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Some of the constraints which evolved during the course of study are as follows: •

The most significant limitation has been that the actual effectiveness of the services through SAP ERP cannot be just presented by doing the survey in some departments.

•

Only human resource aspect of the organization was covered.

•

There could have been some errors while selecting items from the universe.

•

There could be some errors in data collection, data interpretation, and even the environment plays an important role in the outcome of the results.

•

Some of the errors may have crept in due to the financial constraints.

•

There may have been some personal bias on part of employees due to unwillingness to reveal the fact or due to tiredness.

•

There may be some errors due to the responses of worker grade employees who are uneducated.

BiBliograPhy BOOKS •

Copper and Schindler- Business Research Methods (Tata McGraw Hill, 9 th Edition) 107

•

C. R Kothari- Research Methodology Methods & Techniques (New Age International Publishers, 2nd Edition, 2004)

•

Ivansevich- Human Resource Management (Tata McGraw Hill, 10th Edition)

•

K. Aswathappa- Human Resource and Personnel Management (Tata McGraw Hill, 5th Edition)

JOURNALS AND MAGAZINES – •

NTPC manuals

•

Employee Handbook

WEBSITES •

www.google.com

•

www.ntpc.co.in

•

www.sap.com

•

NTPC intranet, Vindhyachal

aNNexure SERVICES THROUGH ‘SAP ERP’ EFFECTIVENESS SURVEY

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The following questionnaire has been designed to study the effectiveness of SAP ERP run by NTPC (VSTPS). Please give your free and candid opinion. Your response will be used only for academic purpose. Kindly rate the various statements listed below on the following scale by putting a tick mark (√ ) in the appropriate cell.

5 = strongly agree 4 = agree 3 = neither agree nor disagree 2 = disagree 1 = strongly disagree Respondent details: Grade: Department: S.No. Statements

5

1.

I have been provided adequate training of SAP ERP.

2.

SAP ERP has reduced paper work.

3.

Productivity has increased after the introduction of SAP ERP.

4.

SAP ERP has integrated all departments.

5.

SAP ERP has reduced time and provides faster delivery of services.

6.

SAP ERP has resulted in increased customer satisfaction.

7.

SAP ERP has reduced work load of employees.

8.

Chances of error have been reduced with the introduction of SAP ERP.

9.

SAP ERP increases efficiency of employees.

10.

SAP ERP helps in better compliance with changing global and local regulations.

11.

SAP ERP is more helpful and convenient than older system.

12.

SAP ERP services are available as and when required.

13.

SAP ERP helps speed up transaction process.

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4

3

2

1

14.

SAP ERP helps in decision making.

15.

I am aware of the uses of Application Tracker in SAP ERP.

16.

Employees adapted quickly to changing environment.

17.

SAP ERP systems and processes are user friendly.

18.

SAP ERP maximizes transparency and control of the organization.

19.

SAP ERP has standardized business.

Specify your suggestions for improvement, if any.

aBBreviatioNs CSR – Corporate Social Responsibility ERP - Enterprise Resource Planning ECC - ERP Central Component 110

HCM – Human Capital Management HR – Human Resource IT – Information Technology JV – Joint Venture LNG – Liquefied Natural Gas NTPC – National Thermal Power Corporation PSU – Public Sector Unit R/3 – Real Time 3 Tier architecture SEB – State Electricity Board SEM – Strategic Enterprise Management SAP – System Analysis and Program development UT – Union Territory

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